Despite the fact that Chinas WH Group purchased Swift and Swift Premium from the US, the decision has raised eyebrows. Smithfield Foods was started in 1936 by a family in Virginia. PBS NewsHour It processed 32 million pigs per year as the countrys largest pork company. "Down the road, if this continues and we ship a lot of product to China, certainly I think we (in America) could see shortages, particularly on hams and bellies,"admittedSmithfield's director of procurement. 31 May 2013. Chinas strategy is similar to that of the United States, which keeps a strategic oil reserve in the event of price inflation or war. I would have to check with the client first before I could comment on that. In 2013, shareholders of Smithfield Foods voted to approve a partnership with Shuanghui International Holdings Limited, a private company based in Hong Kong that holds a majority of shares in Chinas largest meat processor,Henan Shuanghui Investment & Development Co. Ltd. Forbes magazine reported that a growing demand due to large populations, rising production costs and repeated concerns about quality formed the basis of Shuanghui Internationals quest to acquire the North American meat producer., Forbes also reported the Chinese acquisition of Smithfield does not mean that Americans will be eating Chinese cuts. SMITHFIELD FOODS TO RESTART SOUTH DAKOTA PLANT FROM MAY 7. No Smithfield products come from animals raised, processedor packaged in China.. Wow. This was completely unplanned and serendipitous in so many ways. The purchase was underwritten with a $4-billion Bank of China loan facilitated by the Chinese Communist Party. How much money can you make a month on Survey Junkie? It also aims to reduce quality concerns at the same time by selling "American" meat to consumers in China. In other words - and we could give you a thousand other examples - America's, not China's, America's entire leadership class, from the government to the intel agencies to elected officials to . Smithfield itself operates under the leadership of CEO and President Shane Smith, who took on those roles this year. Armour and Plankinton dissolved their partnership in 1884 with the Milwaukee operation eventually becoming the Cudahy Packing Company.[1]. "The linchpin in the middle is the harvest facilities, and there's a relatively small number of plants that actually harvest all those animals and turn it into food. "We do not anticipate any changes in how we do business operationally in the United States and throughout the world.". When Smithfield agreed to sell to WH Group in 2013, 96 percent of the current investors and shareholders voted in favor of the sale. 2023 FOX News Network, LLC. More than 100 years later, Purina still produces a range of dog and cat food. Subscribe to Heres the Deal, our politics Its CEO, Wan Long, is one of China's richest men, with a fortune of more than $1.8 billion according to Forbes. How much money do you need to be a true millionaire? No, Bank of America is not partly owned by China. Powered and implemented byFactSet Digital Solutions. This company produces and processes pork in the United States, and it is a subsidiary of WH GroupSmithfield Foods, Inc. is a Chinese-owned pork producer and food processing company. Product type Canned food Website armour-star.com. Currencies That Are Stronger Than The US Dollar. The company was founded in 1936 in Smithfield, Virginia, and was purchased in 2013 by Hong Kong-based WH Group, a publicly traded company with shareholders all over the world. 6 September 2013. Major changes in the United States are expected within two to five years. Does China own Armour meats? Shuanghui, located in China, operates a massive refrigerated warehouse that is twice the size of a football field. We went to Shuanghui's headquarters in Luohe, China. FAQ - New Privacy Policy. So if the government has an initiative, and they want to go forward with it, the advantage is, is that they can support that. The product was used as an antiseptic during World War II, and eventually became the top producer of petroleum jelly in the US. Smithfield has retooled to give greater focus to the China market. China is buying all America. In 2013, Smithfield Foods was bought by the Shanghui Group, later rebranded as the WH Group, for $4.7 billion. We are now looking at a few other very large transactions for Chinese clients looking at other iconic brands in the United States. The acquisition by Shuanghui was seen as a way for the Chinese company to gain access to Smithfields technology and know-how in large-scale pork production. Nathan Halverson from the Center for Investigative Reporting looks into the Chinese government's role in the takeover. Because Shuanghui, according to its own documents, is required to carry out China's five-year plan. Sanchez, the lawyer for Shuanghui, says the Bank of China is set to fund many more Chinese takeovers. Smithfield Foods, the worlds largest pork producer, was acquired by a Chinese firm in 2013 for nearly $5 billion -- more than the companys market value. It was purchased by the WH Group in 2013 for $4.7 billion, formerly known as Shuanghui International. What really is it that this merger, this purchase, was all about? With that purchase, the. Dial soap is now owned by Henkel. Richards said all products regulated by the FDA must meet the same requirements whether they are produced domestically or imported from abroad and that the FDA works with state and industry partners to issue public noticesabout products that present risks to consumers. So, to find out more, we went to China, where a rapidly growing middle class is eating more meat every year, pushing the country's pork production to the limit. Chinas import is 14% lower than in the period before the COVID-19 coronavirus pandemic. Stabenow is now drafting legislation that would require the Treasury Department to take a much harder look at foreign takeovers of American food companies. The trade in pork is all the other way, and so is the technology transfer that Chinese firms crave as they seek to consolidate a fragmented, poorly run industry. And you can't expect him to be a China expert. Although food production is relatively safe and follows multiple safety protocols, it makes sense that people are cautious about the food that comes from other countries, especially in the COVID-19 coronavirus context. Including meat. An exchange of debt was also included in the transaction, which valued Smithfield at $7.1 billion. Pork is the most popular meat in China as it forms more than three-fourths of total meat consumption in the country. Other appointments were made, including a new CFO and other vice presidents within the company. During the 1950s, Dial became the best-selling deodorant soap in the US. And I think there are some very, very tough questions that need to be answered., The Smithfield Foods Inc. logo is displayed on boxes at the company's pork processing facility in Milan, Missouri, April 12, 2017. Under the Smithfield brand, the meat will be processed in China and sold there. Armour operated in an environment without labor unions, health inspections, or government regulation. There is no clear evidence to support either claim. Costco is a publicly traded company, while Sam's Club is a subsidiary of Walmart. Chinese ownership of our essential food producers generates a similar vulnerability to our national security. However, some Costco products, including those for its private label, Kirkland Signature, are made in China. Moreover, demand for the meat is only rising as disposable incomes of more than 1.3 billion people in China are rising. (Daniel Acker/Bloomberg via Getty Images), Smithfield's CEO at the time, C. Larry Pope, said the company would continue with "business as usual only better. Today, the Chinese own Armour and the famous Smithfield hams, together with the most quintessential American brand . What wood should not be used for firewood? America is home to many companies that are true titans of industry. All Rights Reserved. The Communist Party of Chinas five-year plan, known as the five-year plan, requires the company to follow. Jenna Wollin, a spokeswoman for Smithfield Foods, said in an email to USA TODAY that claims aboutChina slaughtering and processing hogs and shipping them back to the U.S. is absolutely false.. So, I would just ask Mr. Slane to do the research. According to McMaster, China's leaders believe they have a narrow window of opportunity to revise the international order in their favor before other countries realize that the party is pursuing national rejuvenation at their expense. Fresh grass, fresh hay, and fresh water are fed to our animals to promote weight gain and prevent antibiotics, hormones, and steroids from being used. O'Toole, James and Parija Kavilanz. As the U.S. government reviewed the deal, Stabenow called a Senate hearing to take a deeper look at the first Chinese purchase of a major American food company. The Smithfield Packing Company, founded in 1936 by Joseph WSmithfield Foods, began as a private label of The Smithfield Company. Offers may be subject to change without notice. What is the best job to become a millionaire? It is becoming increasingly common for lawmakers to propose legislation to protect against foreign intervention in critical natural resources. Smithfield was sold to China's Shuanghui International Holdings Limited for about $4.72 billion in cash in 2013.The Chinese company is now known as WH Group. WH Group is headquartered in Hong Kong. "Why Chinese Purchase of Smithfield Could Be Game Changer for Pork Trade." The nation produced more than half the world's total pork in 2012, while. When consumed in moderation, it is low in calories. Food is poised to become the oil of the 21st century, with demand increasing for a scarce resource. This story was produced as part of the Food for 9 Billion series, a collaboration between the Center for Investigative Reporting and Homelands Productions, with broadcast partners the "PBS NewsHour," American Public Media's "Marketplace" and PRI's "The World.". Thank you. Today, the Chinese own Armour and the famous Smithfield hams, together with the most quintessential American brand of all: Nathan's Famous hot dogs, with its iconic annual eating contest. Farmers will benefit as a result of the deal, which will increase production at Smithfields hog farms. Armour-Dial continued to manufacture the canned meat products using the Armour Star trademark under license from ConAgra. Eckrich was founded as a local meat market in Fort Wayne, Indiana, USA, in 1894 by Peter Eckrich, an immigrant from Waldsee, Germany.The firm expanded in the local market, becoming a wholesaler in 1907 and incorporating as Peter Eckrich and Sons in 1925. headquartered in Louisville, Kentucky, is one of the largest employers in the United States, employing more than 40,000 people and serving thousands of local farmers. The Wall Street Journal. The United States import its beef is mostly from Australia, followed by New Zealand, Canada, and Mexico. Moreover, these messages claimed, U.S. Food and Drug Administration (FDA) rules would permit pork products handled in this way to be labeled "Raised in the USA," without specifying they were processed in a foreign country. without having to undergo any meaningful due diligence. The post also says Smithfield Foods was recently sold to China. Some members of Congress wondered why Shuanghui group would pay more than Smithfield's market value. Take beef, for example. does china own armour meats; does china own armour meats. It fought unionization by banning known union activists and breaking strikes in 1904 and 1921 by employing African Americans and new immigrants as strikebreakers. The U.S. Federal Government. If the deal goes through (there are political worries about Chinese food safety, and another company could always step in and make another offer), it will be the largest acquisition of an American company by a Chinese outfit. 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